South African Thermal coal offers remained strong this week also, contrastingly subdued demand putting pressure for forward trading.
South African coal offers remained firm this week, with a marginal fall of about USD 1/MT for forward loading. Current offers for South African coal have still remained at elevated level, which had been moved up since Feb ’16. Despite subdued demand and oversupplied market, offers were hovering at upside. But now, it seems to be under pressure for forward bookings.
It is also to be noted that current offers are lower than the offers heard in last week. Panamax vessel of 5500 NAR is being offered at USD 52/MT and USD 51/MT, CFR Dhamra and Gangavaram port respectively for Apr’16 loadings.
At present, India, one of the major buyers of South African grade, is receiving thermal coal offers in a wider range from different origins. However, Indian sponge manufacturers still require imported South African 5500 NAR coal as other available grade’s specification is not suitable for sponge units.
A West Coast based trader mentioned, “There is more buying interest assessed for 5500 NAR rather than other alternatives as still manufacturers are preferring to stick with their conventional sources. We are offering RB2 Panamax at USD 51/MT at Kandla and Mangalore ports, which is expected to reach at the end of Apr’16.”
He also added that they are offering a Panamax of RB1 at USD 59/MT, CFR Kandla for Mar’16 loading. However, about 12,000 MT of RB1 and 5,000 MT RB2 are being offered at Stock sell at INR 5,000/MT and INR 4,600/MT at Kandla and Mangalore port respectively.
One East Coast based trader mentioned to offer ready to sell material of 5500 NAR South African coal at INR 4,500-4,600/MT at East Coast ports (all duties and clearance included, taxes will be added further).
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